Compiling Human Resource Strategies Using SWOT Model (A Case Study: One of Iran's Industrial Steel Companies)

Corresponding author: Elham Bozorg Haddad
Email: Elham_hadad@ut.ac.ir
WWW.ENGINEERSPRESS.COM
World of Sciences Journal

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Year: 2013 Volume: 01 Issue: 16 Pages: 44-63

Taher Roshandel Arbatani
1
, Elham Bozorg Hadad
1*
1
Associate professor, University of Tehran
1
* Master of Business Administration (Strategic), University of Tehran
ABSTRACT

KEYWORDS: Human resource management, Human resource strategies, SWO

Today human resources play a vital role in companys survival and profit making.
To make optimal use of other resources long term and strategic planning is
needed. The same applies to human resources. Within the framework of human
resource strategies, organizations can optimally make use of opportunities.
Strategic human resource management allows necessary harmony between
organizations different activities, favorable opportunities and prevention of
possible threats. It is an undeniable fact that strategic integration is vital to
compatibility of HR strategy and organizations strategy. The objective of
creating strategic integration is to bring harmony between HR management and
organizations goals. The method applied for the current research is based on
the following steps: A) application of a model based on quadruple subsystems
including recruitment and provision, improvement, maintenance and application
B) application of David model, based on SWOT model C) application of
strategies of human resource management.

Compiling Human Resource Strategies Using SWOT
Model (A case study: one of Irans industrial steel
companies)
ISSN: 2307-3071

45


Introduction
Strategic human resource management is a comprehensive and pervasive approach to manage staff affairs and match
the human resource strategies to companys business strategies. Human resource strategy provides an instruction for
human resource unit. In other words, human resource strategy creates goals and focuses of attention for the human
resource unit and defines the value to be provided by the human resource unit. (Bamberger, 1991) and (Christensen,
2006) strategic human resource management deals with long-term issues and those related with inside and outside
of an organization and its outcome are the policies for the use of different areas of human resource.(Armstrong,
200)

Research Literature:
The aim of this research is to compile HR strategies through study of organizations internal factors (weaknesses and
strengths) and external factors (opportunities and environmental threats) and compiling favorable HR strategies and
Delphi methods.

Human resource management strategies:
Strategy originally was a military word which in Oxford Dictionary it is defined as: a commander-in chief, the art
of planning and directing overall military operations and movements in a war or battle. This definition does not have
much in common with strategy concept in the area of business, public and private organization. However, it implies
that strategy is an art and the head of an organization is in charge of all the achievements and consequences.
Drucker (1995) defines strategic decisions as all the decisions related to companys goals and the ways to achieve
it.
According to Chandler (1962) strategy means defining long-term and basic goals of a company. As Child (1972)
says strategy is a set of basic and vital decisions about outcomes of an activity and the tools to achieve it.
Kei (1999) states that business strategy deals with harmony between companys internal potential capabilities with
its external environment (Armstrong, Michael 1384)

Strategy key concepts:
Three key concepts of strategy are as follows:
Competitive advantage: competitive advantage goes to a company that values its clients.
Distinct capabilities: The opportunity a company has in order to retain competitive advantage is defined by its
capabilities.
Strategic harmony: is to maximize the harmony between competitive adventure and of a company with its
capabilities and also to maximize resources in relation to the opportunities existing in external environment.
(Armestrong, 2002)
46


Strategic Management:
This operational procedure is regarded as a process that theoretically consists of sequence of activities:
Strategic designing, strategic planning, implementing the strategy of review and update.
Strategic management is defined as follows:
Strategic management is the set of decisions and actions resulting in the formulation and implementation of
strategies designed to achieve the objectives of an organization.
Powerful managers specify organizations policies and protect them against dramatic changes. They look to the
future, and such a vision allows them take better decisions. Also relying on current capacities, capabilities and
strengths they envision bright future.

Strategic Management of Human Resource:
The concept of human resource management was first introduced in the middle of 1980s and its objective was to
provide some methods for management of the staff and improvement of organizations performance (Saadat, 2007).
The concept of strategic human resource management is built on the important role of human resource management
which emphasizes the strategic nature of human resource and also integration of human resource strategies with
organizations strategy. Schuler (1992) has described the strategic management of human resources as "to stimulate
all activities affecting the behavior of individuals in the design and implementation of the organization's strategic
needs." Wright and McMahon (1992) believe that strategic human resource management is a planned allocation
pattern of human resource and undertaking of activities to help the organization achieve its goals. Strategic
management of human resources is a method for deciding the objectives and plans of issues, such as employment,
recruitment, training, and bonus and performance management. The strategic management of human resources in
general deals with the relationship between human resource management and strategic management of the
organization. (Armstrong, 2006)
The main distinction between traditional concepts of human resource management and strategic human resource
management, as Guest (1989) states is the degree of integration of human resource management with the
organization's strategic decision making processes in order to cope with environmental changes. Bir (1997) believes
that the competitive environment, the globalization and constant changes in technology and markets are the main
reasons for the transformation of human resource management concepts into the strategic management of human
resources. The traditional concepts of human resource management only emphasizes the physical skills, special
training, expertise and efficiency of individual employees and instead of focusing on individuals, tried to focus on
the work done by the individuals. While the strategic management of human resources, in addition to the above-
mentioned items, in all sectors, emphasizes the effectiveness and integrity of the overall activities of the

AIMS OF HRM
As Ulrich and Lake (1990) remark: HRM systems can be the source of organizational capabilities that allow firms
to learn and capitalize on new opportunities. Specifically, HRM is concerned with achieving objectives in the areas
summarized below. (Armstrong, 2006)
47


Organizational effectiveness
Distinctive human resource practices shape the core competencies that determine how firms compete (Cappelli and
Crocker-Hefter, 1996)
HRM strategies aim to support programmers for improving organizational effectiveness by developing policies in
such areas as knowledge management, talent management and generally creating a great place to work. This is the
big idea as described by Purcell et al (2003), which consists of a clear vision and a set of integrated values. More
specifically, HR strategies can be concerned with the development of continuous improvement and customer
relations policies. (Armstrong, 2006)

Human capital
The human capital of an organization consists of the people who work there and on whom the success of the
business depends. Human capital has been defined by Bontis et al (1999) as follows: Human capital represents the
human factor in the organization; the combined intelligence, skills and expertise that give the organization its
distinctive character. The human elements of the organization are those that are capable of learning, changing,
innovating and providing the creative thrust which if properly motivated can ensure the long-term survival of the

Knowledge management
Knowledge management is any process or practice of creating, acquiring, capturing, sharing and using knowledge,
wherever it resides, to enhance learning and performance in organizations (Scarborough et al 1999). HRM aims to
support the development of firm-specific knowledge and skills that are the result of organizational learning
processes. (Armstrong, 2006)

Reward management
HRM aims to enhance motivation, job engagement and commitment by introducing policies and processes that
ensure that people are valued and rewarded for what they do and achieve, and for the levels of skill and competence
they reach. (Armstrong, 2006)

Employee relations
The aim is to create a climate in which productive and harmonious relationships can be maintained through
partnerships between management and employees and their trade unions. (Armstrong, 2006)

Meet diverse needs
HRM aims to develop and implement policies that balance and adapt to the needs of its stakeholders and provide for
the management of a diverse workforce, taking into account individual and
48


group differences in employment, personal needs, work style and aspirations, and the provision of equal
opportunities for all. (Armstrong, 2006)

Rhetoric and reality
The research conducted by Gratton et al (1999) found that there was generally a wide gap between the sort of
rhetoric expressed above and reality. Managements may start with good intentions to do some or all of these things,
but the realization of them theory in use is often very difficult. This arises because of contextual and process
problems: other business priorities, short-termism, and lack of support from line managers, an inadequate
infrastructure of supporting processes, lack of resources, resistance to change and lack of trust. (Armstrong, 2006)

A Comprehensive Strategy-Formulation Framework
Important strategy-formulation techniques can be integrated into a three-stage decision-making framework, as
shown in Figure. (Shams Abdolhamid, 1390)

STAGE 1: THE INPUT STAGE
External Factor Evaluation (EFE) Internal Factor Evaluation (IFE)
Matrix Matrix

STAGE 2: THE MATCHING STAGE

Strengths-Weaknesses-
Opportunities-Threats
(SWOT) Matrix

STAGE 3: THE DECISION STAGE
Quantitative Strategic Planning Matrix (QSPM)

FIGURE 1: The Strategy-Formulation Analytical Framework

49


The Internal Factor Evaluation (IFE) Matrix
A summary step in conducting an internal strategic-management audit is to construct an Internal Factor Evaluation
(IFE) Matrix. This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the
functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those
areas. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a scientific approach
should not be interpreted to mean this is an all-powerful technique. A thorough understanding of the factors included
is more important than the actual numbers. IFE Matrix can be developed in five steps:
1. List key internal factors as identified in the internal-audit process. Use a total of from 10 to 20 internal
factors, including both strengths and weaknesses. List strengths first and then weaknesses. Be as specific as
possible, using percentages, ratios, and comparative numbers. Recall that Edward Deming said, In God we
trust. Everyone else bring data.
2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all-important) to each factor. The weight
assigned to a given factor indicates the relative importance of the factor to being successful in the firms
industry. Regardless of whether a key factor is an internal strength or weakness, factors considered to have
the greatest effect on organizational performance should be assigned the highest weights. The sum of all
weights must equal 1.0.
3. Assign a 1-to-4 rating to each factor to indicate whether that factor represents a major weakness (rating =
1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4). Note that
strengths must receive a 3 or 4 rating and weaknesses must receive a 1 or 2 rating. Ratings are thus
company-based, whereas the weights in step 2 are industry-based.
4. Multiply each factors weight by its rating to determine a weighted score for each variable.
5. Sum the weighted scores for each variable to determine the total weighted score for the organization.
(Shams Abdolhamid,1390)

The External Factor Evaluation (EFE) Matrix
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluate economic, social, cultural,
demographic, environmental, political, governmental, legal, technological, and competitive information. EFE Matrix
can be developed in five steps:
1. List key external factors as identified in the external-audit process. Include a total of 15 to 20 factors,
including both opportunities and threats, which affect the firm and its industry. List the opportunities first
and then the threats. Be as specific as possible, using percentages, ratios, and comparative numbers
whenever possible. Recall that Edward Deming said, In God we trust. Everyone else bring data.
2. Assign to each factor a weight that ranges from 0.0 (not important) to 1.0 (very important). The weight
indicates the relative importance of that factor to being successful in the firms industry. Opportunities
often receive higher weights than threats, but threats can receive high weights if they are especially severe
or threatening. Appropriate weights can be determined by comparing successful with unsuccessful
competitors or by discussing the factor and reaching a group consensus. The sum of all weights assigned to
the factors must equal 1.0.
50


3. Assign a rating between 1 and 4 to each key external factor to indicate how effectively the firms current
strategies respond to the factor, where 4 = the response is superior, 3 = the response is above average, 2 =
the response is average and 1 = the response is poor. Ratings are based on effectiveness of the firms
strategies. Ratings are thus company-based, whereas the weights in Step 2 are industry-based. It is
important to note that both threats and opportunities can receive a 1, 2, 3, or 4.
4. Multiply each factors weight by its rating to determine a weighted score.
5. Sum the weighted scores for each variable to determine the total weighted score for the organization.
(Shams Abdolhamid,1390)

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching tool that helps
managers develop four types of strategies: SO (strengths-opportunities) Strategies, WO (weaknesses-opportunities)
Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-threats) Strategies.3 Matching key external and
internal factors is the most difficult part of developing a SWOT Matrix and requires good judgmentand there is no
one best set of matches. Note in Table 6-1 that the first, second, third, and fourth strategies are SO, WO, ST, and
WT strategies, respectively.
SO Strategies use a firms internal strengths to take advantage of external opportunities. All managers would like
their organizations to be in a position in which internal strengths can be used to take advantage of external trends
and events. Organizations generally will pursue WO, ST, or WT strategies to get into a situation in which they can
apply SO Strategies. When a firm has major weaknesses, it will strive to overcome them and make them strengths.
When an organization faces major threats, it will seek to avoid them to concentrate on opportunities.
WO Strategies aim at improving internal weaknesses by taking advantage of external opportunities. Sometimes key
external opportunities exist, but a firm has internal weaknesses that prevent it from exploiting those opportunities.
For example, there may be a high demand for electronic devices to control the amount and timing of fuel injection in
automobile engines (opportunity), but a certain auto parts manufacturer may lack the technology required for
producing these devices (weakness). One possible WO Strategy would be to acquire this technology by forming a
joint venture with a firm having competency in this area. An alternative WO Strategy would be to hire and train
people with the required technical capabilities.
ST Strategies use a firms strengths to avoid or reduce the impact of external threats. This does not mean that a
strong organization should always meet threats in the external environment head-on. An example of ST Strategy
occurred when Texas Instruments used an excellent legal department strength) to collect nearly $700 million in
damages and royalties from nine Japanese and Korean firms that infringed on patents for semiconductor memory
chips (threat). (Fred R. David 1999)

The Quantitative Strategic Planning Matrix (QSPM)
Other than ranking strategies to achieve the prioritized list, there is only one analytical technique in the literature
designed to determine the relative attractiveness of feasible alternative actions. This technique is the Quantitative
Strategic Planning Matrix (QSPM), which comprises Stage 3 of the strategy-formulation analytical framework.6
This technique objectively indicates which alternative strategies are best. The QSPM uses input from Stage 1
analyses and matching results from Stage 2 analyses to decide objectively
51


among alternative strategies. That is, the EFE Matrix, IFE Matrix, and Competitive Profile Matrix that make up
Stage 1, coupled with the SWOT Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy Matrix that
make up Stage 2, provide the needed information for setting up the QSPM (Stage 3). The QSPM is a tool that allows
strategists to evaluate alternative strategies objectively, based on previously identified external and internal critical
success factors. Like other strategy-formulation analytical tools, the QSPM requires good intuitive judgment. Six
steps required to develop a QSPM are discussed:
1. Make a list of the firms key external opportunities/threats and internal strengths/ weaknesses in the left
column of the QSPM
2. Assign weights to each key external and internal factor.
3. Examine the Stage 2 (matching) matrices, and identify alternative strategies that the organization should
consider implementing.
4. Determine the Attractiveness Scores (AS)
5. Compute the Total Attractiveness Scores.
6. Compute the Sum Total Attractiveness Score. (Fred R. David 1999)

Research Methodology:
Data collection method of the current research is analytical-descriptive. However, this is an applied research.
Considering that the objective is to compile HR strategies for one of the Steel Industrial Companies, statistical
population includes all the managers, supervisors and persons in charge in different sections. This is a field research
to explain and investigate the nature of the current situation.
Statistical population includes 34 persons and covers all the mangers, supervisors and persons in charge in a Steel
Industrial Company who are working in the main company and the subsidiaries. Through application of census
method, the statistical population includes the whole 34 members of the population.
Data was collected by means of questionnaires and interviews. The questionnaires were distributed in person and via
Email. Research data was obtained during separate meetings with managers, supervisors and persons in charge in
various sections of the company and main subsidiaries of HR recruitment and provision, improvement, maintenance
and application. Then the collected data was captured in SPSS and was analyzed. (Fred R. David 1999)

Questionnaires Validity and Reliability:
With the current research, the main instrument for data collection is the Questionnaire. HR internal and external
factors were identified with the help of managers and by means of Delphi method and the first questionnaires were
prepared. Validity of the questionnaires was approved by academic experts. To test the reliability of the
questionnaires, Cronbach's alpha coefficient was applied. The calculated coefficient is 0.84 which implies the
reliability of the evaluation instrument.

52


Findings:
External identified factors for other main HR subsystems
The external factors including opportunities and threats for other HR areas are listed in Table 1.
Table 1 Opportunity and Threats
Weights Rate Score Opportunities
0.04 3 0.12
HR
management
The possibility of promotion of companys culture due to
employment of university graduated people O1
0.04 3 0.12
The fact that there is an appropriate communicative platform to
introduce the organization O2
0.06 4 0.24 The positive effect of rich Islamic culture on employers behavior O3
0.05 3 0.15
Improvement
Other organizations enthusiasm for training sessions O4
0.05 4 0.2 Governments positive attitude towards HR development O5
0.06 3 0.18
Employment
Good reputation of the company among other rivals O6
0.04 2 0.08 Governmental employers integrated salary system O7
0.06 4 0.24 Maintenance Mother company support of companys plans O8

Threats
0.05 3 0.15
HR
management
Not identifying, categorizing and prioritizing the beneficiaries T1
0.08 3 0.24 Low job security in private sector T2
0.05 2 0.1 Lack of favorable relation with internal and external beneficiaries T3
0.07 2 0.14
Recruitment
Lack of required experience among university graduated individuals
(knowledge, communication, etc.) T4
0.05 3 0.15 Employment Lack of welfare programs in private sector T5
0.05 3 0.15
Maintenance
Unbelief of employers in existence of a system for delegation of
authority in private companies T6
0.05 3 0.15
Unbelief of employers in existence of staff contribution in private
companies T7
0.05 3 0.15 Unbelief of employers in being valuable to private companies T8
0.06 3 0.18 Mismatch between ever growing needs with organizations facilities T9
0.04 3 0.12 Unequal execution of lay-off rules within organizations T10
0.05 3 0.15
Weakness of rules for outsourcing and privatization
T11
1 3.01

Internal identified factors for other main HR subsystems
The internal factors including weakness and strengths for other HR areas are listed in the Table 2.

53


Table 2 Strengths and Weaknesses
Weights Rate Score

Strengths
0. 05 4 0. 2
HR management
How important strategic role of HR is to companys
management S1
0. 03 3 0. 09 Organizations credit, good reputation and history S2
0. 03 3 0. 09 Clear work plans and notifying the employers S3
0. 02 3 0. 06
Recruitment
Planning manpower in terms of number of individuals S4
0. 02 3 0. 06 Existence of enough capacity for application of manpower S5
0. 04 2 0. 08
Improvement
Helpful suitable training programs S6
0. 03 3 0. 09
Increase of employers capabilities and performance due to
training courses S7
0. 02 2 0. 04 Making endeavors to use educational technologies S8
0. 03 3 0. 09
Employment
The health and insurance system for employers S9
0. 03 3 0. 09 Formal and informal relations among employers S10
0. 03 3 0. 09
Maintenance
On-the-job trainings S11
0. 02 3 0. 06 A complaint-resolving system S12
0. 02 3 0. 06 A feedback system S13
0. 02 3 0. 06 A systematic dismissal procedure for employers S14

Weaknesses
0. 04 3 0. 12
HR management
Lack of strategic vision among some of the managers W1
0. 03 2 0. 06
Recruitment
Lack of a plan for recruitment W2
0. 05 2 0. 1
Improvement
Not reviewing the courses and updating the chapters based
on todays sources W3
0. 05 2 0. 1 Not updating employers educational profiles W4
0. 05 2 0. 1
Not paying attention to improvement of training activities in
case of some jobs W5
0. 05 2 0. 1
Employment
Lack of a plan for job promotion and substitution W6
0. 05 2 0. 1 Not investigating the process of work leaving W7
0. 05 2 0. 1
Not providing job opportunities at proper periods of time
based on skill and performance W8
0. 05 2 0. 1 Low salary and benefits comparing other organizations W9
0. 04 2 0. 08 Lack of welfare plans in case of some jobs W10
0. 05 3 0. 15
Maintenance
Lack of loyalty among employers at different levels W11
0. 05 2 0. 1 Lack of a substitute at operational levels W12
0. 05 2 0. 1 Not doing exit interviews for all jobs W13
1 2. 47

54


SO Strategies
Through combination of strengths and opportunities, we come to strategies of recruitment and employment which
include identification of opportunities and futures need of work forces, planning for provision of internal and
external workforces and improvement of capacity and the possibility for recruitment to specialist jobs. The list of
these items is provided in Table 3.
Table 3: combination of strengths and opportunities
employment of university graduated people O1
introduce the organization O2
The positive effect of rich Islamic culture on employers behavior O3
Good reputation of the company among other rivals O6
Governmental employers integrated salary system
O7
Mother company support of companys plans O8
How important strategic role of HR is to companys management S1
Organizations credit, good reputation and history S2
Clear work plans and notifying the employers S3
Planning manpower in terms of number of individuals S4
Existence of enough capacity for application of manpower S5
A systematic dismissal procedure for employers S14

WO Strategies
Through combination of weaknesses and opportunities, we come to strategies of HR development which include
application of meritocracy at jobs different levels, improvement and making diversity in training programs and the
assurance of equal education opportunities and establishing the appropriate mechanisms for implementation of
training plans. The list of these items is provided in Table 4.

55


Table 4: combination of weaknesses and opportunities
Other organizations enthusiasm for training sessions O4
Governments positive attitude towards HR development O5
O7
Mother company support of companys plans O8
Not reviewing the courses and updating the chapters based on
todays sources W3
Not updating employers educational profiles W4
Not paying attention to improvement of training activities in case of
some jobs W5
Not investigating the process of work leaving W7
Not providing job opportunities at proper periods of time based on
skill and performance W8
Lack of welfare plans in case of some jobs W11

ST Strategies
Through combination of strengths and threats, we come to strategies of performance management which include
establishment of a system for contribution and delegation of authority, establishment of motivational procedures to
boost effectiveness and improvement of integrated evaluation system and strategy area which includes staff relations
containing items such as establishing mechanisms for communication with the beneficiaries, investigating the
effectiveness of complaint systems and improving staff relations to help knowledge transfer and boost
communication skills. The list of these items is provided in Table 5 and 6.

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Table 5: combination of strengths and threats
Lack of favorable relation with internal and external beneficiaries T3
Lack of welfare programs in private sector T5
companies T7
Unbelief of employers in being valuable to private companies T8
Unequal execution of lay-off rules within organizations T10
T11
Helpful suitable training programs S6
Increase of employers capabilities and performance due to training
courses S7
Making endeavors to use educational technologies S8
Formal and informal relations among employers S10
A complaint-resolving system
S12
A feedback system S13

57


Table 6: combination of strengths and threats
Low job security in private sector T2
Lack of favorable relation with internal and external beneficiaries T3
Lack of required experience among university graduated
individuals (knowledge, communication, etc.) T4
companies T7
Mismatch between ever growing needs with organizations
facilities T9
Weakness of rules for outsourcing and privatization T11
Formal and informal relations among employers S10
S12
A feedback system S13

TW Strategies
Through combination of weaknesses and threats, we come to strategies of compensation and benefits which include
designing new payment plans, welfare initiatives and also systematizing of payment. The list of these items is
provided in Table 7.

58


Table 7: combination of weaknesses and threats
Low job security in private sector T2
companies T7
Unbelief of employers in being valuable to private companies T8
facilities T9
Unequal execution of lay-off rules within organizations T10
T11
Lack of strategic vision among some of the managers W1
Not investigating the process of work leaving W7
Low salary and benefits comparing other organizations W9
Lack of welfare plans in case of some jobs W10
Not doing exit interviews for all jobs W13

Matrix for threats, opportunities, weaknesses and strengths
SWOT matrix provided in the table 2 below shows the summary of other combinations.

Always be white S- Strengths W- Weaknesses
O- opportunities

SO Strategies
Recruitment and employment
strategy includes:

Identifying
opportunities and
future needs for work
forces
Planning for
recruitment of internal
and external work
forces
Increasing the capacity
and possibility of
WO Strategies
HR development strategies
include:
Application of
meritocracy at jobs
different levels
improvement and
making diversity in
training programs and
the assurance of equal
education opportunities
Establishing
appropriate
mechanisms for
59


recruitment for
specialist jobs

implementation of
training plans
T- Threats

ST Strategies
Performance management
strategies include:
Establishment of a
system for contribution
and delegation of
authority
Establishment of
motivational systems
to boost effectiveness
Improvement of
integrated system for
evaluation and
promotion
Staff relations strategies include:
Establishing
appropriate
mechanisms for
communication with
the beneficiaries
Analyzing the
effectiveness of
complaints systems
Improving staff
relations to help
knowledge transfer
and boost
communication skills

WT Strategies
Compensation and benefit strategy
includes:
Designing new
payment plans
welfare initiatives
systematizing of
payment
FIGURE 2: SWOT matrix

Prioritizing strategies by means of QSPM Matrix:
At this stage, for each internal and external factor, based on the related strategy, a score is given. The total of
multiplying of these scores by each factors coefficient shows the favorability of that strategy. These calculations are
shown in Table 8.

60


Table 8 Prioritizing strategies
Weight
recruitment and
employment strategies
Scor
e

0. 04 2 0. 08
employment of university graduated people
O1
0. 04 3 0. 12
introduce the organization
O2
0. 06 3 0. 18
The positive effect of rich Islamic culture on employers behavior
O3
0. 06 3 0. 18
Good reputation of the company among other rivals
O6
0. 04 2 0. 08

O7
0. 06 2 0. 12
Mother company support of companys plans
O8
0. 05 2 0. 1
How important strategic role of HR is to companys management
S1
0. 03 3 0. 09
Organizations credit, good reputation and history
S2
0. 03 2 0. 06
Clear work plans and notifying the employers
S3
0. 02 3 0. 06
Planning manpower in terms of number of individuals
S4
0. 02 3 0. 06
Existence of enough capacity for application of manpower
S5
0. 03 2 0. 06 The health and insurance system for employers S9
0. 03 2 0. 06 On-the-job trainings S11
0. 02 2 0. 04 A systematic dismissal procedure for employers S14
weights
human resource
development strategies

0. 05 3 0. 15
Other organizations enthusiasm for training sessions
O4
0. 05 4 0. 2
Governments positive attitude towards HR development
O5
0. 04 2 0. 08

O7
0. 06 4 0. 24
Mother company support of companys plans
O8
0. 05 2 0. 1
Not reviewing the courses and updating the chapters based on
todays sources
W3
0. 05 3 0. 15
Not updating employers educational profiles
W4
0. 05 3 0. 15
Not paying attention to improvement of training activities in case
of some jobs
W5
0. 05 3 0. 15
Lack of a plan for job promotion and substitution
W6
0. 05 3 0. 15
Not investigating the process of work leaving
W7
0. 05 2 0. 1
Not providing job opportunities at proper periods of time based
on skill and performance
W8
0. 05 3 0. 15
Lack of welfare plans in case of some jobs
W1
1
61


0. 05 2 0. 1
Lack of loyalty among employers at different levels
W1
2
weights
performance
management strategies

0. 05 2 0. 1
Not identifying, categorizing and prioritizing the beneficiaries
T1
0. 05 2 0. 1
Lack of favorable relation with internal and external beneficiaries
T3
0. 05 2 0. 1
Lack of welfare programs in private sector
T5
0. 05 3 0. 15
authority in private companies
T6
0. 05 3 0. 15
companies
T7
0. 05 3 0. 15
Unbelief of employers in being valuable to private companies
T8
0. 04 2 0. 08
Unequal execution of lay-off rules within organizations
T10
0. 05 2 0. 1

T11
0. 05 2 0. 1
How important strategic role of HR is to companys management
S1
0. 03 3 0. 09
S3
0. 04 2 0. 08
Helpful suitable training programs
S6
0. 03 3 0. 09
Increase of employers capabilities and performance due to
training courses
S7
0. 02 2 0. 04
Making endeavors to use educational technologies
S8
0. 03 3 0. 09
The health and insurance system for employers
S9
0. 03 3 0. 09
Formal and informal relations among employers
S10
0. 03 3 0. 09
On-the-job trainings
S11
0. 02 2 0. 04

S12
0. 02 3 0. 06
A feedback system
S13
weights staff relations strategies
0. 05 3 0. 15
Not identifying, categorizing and prioritizing the beneficiaries
T1
0. 08 3 0. 24
Low job security in private sector
T2
0. 05 3 0. 15
Lack of favorable relation with internal and external beneficiaries
T3
0. 07 3 0. 21
Lack of required experience among university graduated
individuals (knowledge, communication, etc.)
T4
0. 05 2 0. 1
T5
0. 05 1 0. 05
T6
0. 05 1 0. 05
companies
T7
0. 06 2 0. 12
facilities
T9
62


0. 05 1 0. 05 Weakness of rules for outsourcing and privatization T11
0. 05 2 0. 1 How important strategic role of HR is to companys management S1
0. 03 2 0. 06
S3
0. 03 4 0. 12
Formal and informal relations among employers
S10
0. 03 2 0. 06
On-the-job trainings
S11
0. 02 3 0. 06

S12
0. 02 3 0. 06
A feedback system
S13
weights
compensation and
benefit strategies

0. 08 1 0. 08 Low job security in private sector T2
0. 05 2 0. 1
T5
0. 05 3 0. 15
T6
0. 05 3 0. 15
companies
T7
0. 05 3 0. 15
Unbelief of employers in being valuable to private companies
T8
0. 06 2 0. 12
facilities
T9
0. 04 2 0. 08
Unequal execution of lay-off rules within organizations
T10
0. 05 2 0. 1

T11
0. 04 3 0. 12
Lack of strategic vision among some of the managers
W1
0. 05 2 0. 1
Lack of a plan for job promotion and substitution
W6
0. 05 2 0. 1
Not investigating the process of work leaving
W7
0. 05 3 0. 15
Low salary and benefits comparing other organizations
W9
0. 04 2 0. 08
Lack of welfare plans in case of some jobs
W1
0
0. 05 1 0. 05
Lack of loyalty among employers at different levels
W1
1
0. 05 2 0. 1 Not doing exit interviews for all jobs
W1
3

Favorite strategies by means of QSPM Matrix:
The total of multiplying of these scores by each factors coefficient shows the favorability of that Strategy. These
calculations are shown in Figure 3.

63


FIGURE 3: Quantitative Strategic Planning Matrix

References
Bamberger, P. A. And Philips; B. Organizational Environment versus business strategy: Parallel versus conflicting
influences on HR strategy. Human Resource management
Christensen, Ralph, Roadmap to Strategic HR; Turning a Great Idea into a Business Reality; American Management
Association (2006)
Armstrong, M, A Guide for Strategic Human Resource Management, (2002)
Armstrong ,Michael, strategic management, translated by khodayar rabily, hasan tofighi, fara 2001
Armstrong, Michael strategic human resource, translated by mohamad arabi, davoud ezadi 2004
Armstrong, M, A Guide for Strategic Human Resource Management,(2002)
Saadat esfandiar, human resource management 2001
Armstrong ,Michael, A Handbook of Human Resource Management Practice, 2006
Armstrong, Michael strategic human resource, translated by mohamad arabi, davoud ezadi 2007
Shams abdolhamid, strategic management 2011
Fred R. David, strategic management concept and cases 1999
recruitment and employment strategies
human resource development strategies
performance management strategies
compensation and benefit strategies
staff relations strategies
1.29
1.72
1.7
1.63
1.58

Compiling Human Resource Strategies Using SWOT Model (A Case Study: One of Iran's Industrial Steel Companies)

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Corresponding author: Elham Bozorg Haddad

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